Once again, threats of additional tariffs are topping the news cycle. The President has indicated that the 25% tariffs on goods of Canadian or Mexican origin, which were suspended in early February, will be imposed on March 4th. Earlier reports indicated these tariffs might not be implemented before April 2nd. Further, the President has indicated that the newly imposed 10% additional tariffs on China-origin goods will be doubled to 20%.
It’s uncertain whether these tariffs will be imposed or whether they will follow this timetable. Both Canada and Mexico have been working with US officials to show they have taken actions to stem the flow of drugs across the border and are seeking relief from the tariffs.
Since there is no official announcement from the White House or US Customs, we are forced to play a game of wait and see.
Other possible tariff actions, including the possibility of reciprocal tariffs on numerous trading partners, including the EU, are still in the consideration or review phase. We are keenly aware of the impact these tariffs have on pricing and planning, but there are no concrete answers we can give. We will continue to watch this issue closely, but we want to be able, as much as possible, to comment only when we have an official announcement. For the near future, I fear that specifics on tariff and trade policy will be a moving target.
Best Regards,
Sam McClure, LCB
Director of Compliance & Customs Services